With IPO On The Card, Infra.Market Plans Fresh Funding Of Up To $200 Mn At Higher Valuation

Close on the heels of lining up as many as eight investment banks to helm its $700 Mn initial public offering (IPO), B2B ecommerce platform Infra.Market is now reportedly considering to scoop up a fresh funding of $150-200 Mn (about INR 1,250-1,680 Cr). 

As per Moneycontrol’s report, citing sources, Infra.Market’s existing investors, including Tiger Global, Foundamental and Evolvence would inject majority capital for the new round and also believed to raise their stake in the company.

The platform is also in discussions to add new investors to its cap table ahead of its market debut.

Inc42 has reached out to Infra.Market for comments on the development. The story will be updated based on response.

“Infra.Market is planning to raise around $150-200 million in its pre-IPO round. The valuation is still under discussion but will be higher than $2.5 Bn commanded during its 2021 fundraise, on the back of improved financials,” one of the sources was quoted as saying in the report.

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market manufactures construction materials under its private-label brands and leverages technology to digitise the procurement process.

This new development comes weeks after the Thane-based company lined up as many as eight investment banks including Kotak Mahindra Capital, Goldman Sachs, Jefferies, ICICI Securities, and others to helm Infra.Market’s $700 Mn initial public offering (IPO). 

“Once the round closes, the company will look to file its draft IPO papers in December,” the source also said.

“The entire round will be primary capital, there will be no secondary component,” the report quoted another source as saying.

It is to note that the B2B ecommerce platform previously raised INR 185 Cr (about $22 Mn) in debt funding from digital lending unicorn Yubi (formerly CredAvenue), agriculture financing platform Samunnati, Vivriti Capital, among others, by issuing non-convertible debentures, in July.

In the fertile season for IPOs for startups in the country, aside from Infra.Market, food-delivery app Swiggy, logistics major Ecom Express and coworking startup Smartworks are also eyeing a market debut in the upcoming months. 

Until now, Go Digit General Insurance, FirstCry, Unicommerce, TBO Tek, Ola Electric, Awfis, ixigo, Menhood, TAC Security and Trust Fintech, have listed on the stock exchanges in 2024.

Infra.Market has raised about $500 Mn since its inception, as of July 2024.

The unicorn, earlier this year, reported an operating revenue of INR 11,846.5 Cr in the financial year 2022-23 (FY23), an increase of 90% from INR 6,236.3 Cr in the previous fiscal year. 

However, the startup’s net profit declined 17% to INR 155.2 Cr from INR 185.9 Cr, a year ago.

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